OPEC+ Extends Deep Oil Production Cuts Into 2025

OPEC+ has agreed to extend its significant oil output cuts well into 2025.

Since late 2022, OPEC+ has implemented a series of deep output cuts, currently amounting to a total of 5.86 million barrels per day (bpd).

This decision comes as the group seeks to stabilize the market amidst sluggish demand growth, high interest rates, and increasing rival U.S. production, according to reports by Reuters.

Recently, Brent crude oil prices have hovered around $80 per barrel, which is below the budgetary requirements of many OPEC+ members.

Concerns over slow demand growth in China, the top oil importer, along with rising oil stocks in developed economies, have exerted downward pressure on prices.

Since late 2022, OPEC+ has implemented a series of deep output cuts, currently amounting to a total of 5.86 million barrels per day (bpd), which is approximately 5.7% of global demand.

This includes 3.66 million bpd of cuts scheduled to expire at the end of 2024 and voluntary cuts by eight members totaling 2.2 million bpd, set to expire at the end of June 2024.